Warren, Capuano Protest NPL Sales to Wall Street Firms
October 9, 2015
As Fannie Mae and Freddie Mac continue to unload distressed home loans, Sen. Elizabeth Warren, D-MA, along with Rep. Michael Capuano, D-MA, led a protest last week urging the GSEs and the Department of Housing and Urban Development to not keep selling the loans primarily to private-equity firms and hedge funds. They want to level the playing field so that nonprofit groups have a chance at the loans. Inside Mortgage Finance reported in 2013 that its sources noted that some buyers are turning to the nonperforming loan market as a “back door” way to buy homes. Capuano cited a recent New York Times article about private-equity firms buying troubled home mortgages and said the piece “highlights the troubling approach being taken by...
Is Onity Group eyeing a sale? Perhaps. And why not? Servicing values are approaching a 25-year high.
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